What Kind of Information Does the Dividend Payout Ratio Provide

question 157

Multiple Choice

What kind of information does the dividend payout ratio provide?

• A) How much the dividend is in proportion to the stock's market price
• B) What proportion of a share's earnings are paid out in dividends
• C) How much profit each shareholder makes when he sells his shares of stock
• D) How much dividend revenue a company earns on its short-term investments

---

Definitions:

Measurement

The process of obtaining the size, quantity, or degree of something using standard units.

Outcome Objectives

Specific goals that a project or study aims to achieve, measured through certain indicators or outcomes.

Summative Evaluation

A type of evaluation that judges the effectiveness of a program, project, or instruction at its conclusion, summarizing its impact.

Measurement

The process of obtaining a quantitative representation of traits, quantities, or phenomena to allow for analysis or comparison.